Stochastic oscillator trade
The Stochastic Oscillator was developed by George Lane. The calculation is based on the principle that the market is stronger when the closing price near the top track and weaker when the closing price close to the lowest closing price.
Stochastic trade signals
Buy and sell signals occur when both lines after crossing (upwards or downwards) in the same direction.
A fall below the 80 level of the stochastic indicates a sell signal and an increase above 20 indicates a buy signal.
Also apply the divergence in the RSI rules apply:
Bearish divergence: two peaks of the stochastic decreasing while the price shows higher peaks.
Bullish divergence occurs when the stochastic is two higher bottom while the price continues to fall.
We use the stochastic with other indicators to get a better confirmation
related posts
- parabolic sar excel
- dinapoli macd
- rsi divergence mt4
- fibocalc
- mtf heiken ashi
- heiken ashi with alert
